The 340B drug discount program is generating revenue for hospitals, clinics and pharmacies by requiring drugmakers to provide discounts on medications. However, the jury is out on whether this revenue is being used to care for low-income patients as intended.

"Covered entities used revenue from the 340B program to expand health-care services and programming, open specialty clinics, provide medications at reduced costs to patients and subsidize uncompensated care and staff salaries," according to a study reported by JAMA Network. "Patients of covered entities received greater access to health-care services, but there was mixed evidence as to lower medication costs.

"However, covered entities — notably disproportionate-share hospitals — also used 340B revenue for purposes seemingly unrelated to underserved patient care, including opening sites in higher-income neighborhoods and acquiring outpatient physician practices."

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